But, like many business owners, the Hannoushes had to adjust when the world began changing around them. As the economy soured, the price of gold shot up. More people sought sterling silver, which is cheaper.

Albert and his 32-year-old brother, David Hannoush, vice president, warmed to the idea of selling Pandora, a product line they had previously rejected.

The Danish company has become one of the hottest brands in jewelry, attracting young and old customers who buy the charms to suit their personality, to celebrate a milestone and to express affection.

Pandora is sold at a few other local jewelry stores, but the Hannoushes operate the only stand-alone Pandora in the region, on the lower level of Crossgates Mall.

They opened the store in August 2008, after they were encouraged by the results their uncles had in Holyoke, Mass. Their uncles, who operate their own Hannoush Jewelers stores, were the first to open a stand-alone Pandora in Massachusetts, and among the first in the U.S., according to the company.

The 900-square-foot store in Crossgates had lines out the door during the last Christmas shopping season. Two men in search of the same silver bead as a gift got into a fight after learning it was the last one in stock, the Hannoushes said.

“Christmas was phenomenal,” David said.

But is it just a fad that will die like other charm jewelry has in recent years?

The Hannoushes know the bracelet novelty may wear off, but they said Pandora is expanding into other products.

The brothers didn’t disclose sales at the Pandora store, which is a separate business, but said total revenue was comparable to their jewelry store in Colonie Center. That store is three times larger and sells diamonds.

Total sales last year at the Hannoush Jewelers in Colonie Center and Crossgates were about $8 million, down slightly from the year before because of a weak December, typically one of the busiest months for jewelry stores.

Having the Pandora store helped pick up the slack. The lower pricing appealed to people who couldn’t, or wouldn’t, spend a lot on fancier items. Individual charms sell for as little as $25. The highest-price beads are made of solid gold and retail for $1,100.

“There are days it does over 500 transactions,” David said. “It’s more like a supermarket than a jewelry store.”

The Hannoushes and their uncles recently jointly opened another Pandora stand-alone store at the Garden State Plaza in Paramus, N.J. By the end of this year, their uncles will have 20 locations nationwide. Albert and David haven’t ruled out opening another in the Albany area.

Jeff Weiss, owner of Glennpeter Jewelers in Colonie, said the industry is raving about how silver beads bring in customers.

Five months ago, Weiss started selling a Pandora competitor called Chamilia.

“I chose it because we did have customers that wanted it,” Weiss said. “There are some jewelers that say it can be a big headache because there are hundreds and hundreds of beads.”

Weiss lets customers at his Diamond Center on Central Avenue look at the beads on their own so the process doesn’t take up a lot of staff time.

Retail sales have suffered across the board in the recession, but the jewelry industry has been hit especially hard. Eighty-percent of the jewelers surveyed by the trade magazine National Jewelers said sales fell in the 2008 holiday shopping season.

Nearly 400 specialty jewelry stores in the U.S. closed during the first half of this year, compared to about 300 during the first half of 2008, according to Ken Gassman, industry analyst and president of the Jewelry Industry Research Institute in Glen Allen, Va.

Gassman projects a net decline of 750 jewelry stores this year, or 3.3 percent of the total. Even though that number is higher than usual, it’s not as bad as the record decline in 1988, when more than 5 percent of jewelers shut their doors.

Year-to-date sales at Hannoush Jewelers are down 12 percent. The owners consider that a major accomplishment given the horror stories they’ve heard in the industry, with some retailers on the West Coast down 60 percent or 70 percent, David said.

The Hannoushes said they haven’t suffered as much because their bread-and-butter clients—men buying engagement rings—are still spending. Even in a recession, people get married.

Still, to make sales, the Hannoushes have cut into their margins and could finish the year with 40 percent less in profits, David said.

The Hannoushes own the thousands of diamonds in their stores, which they said is unusual. Most jewelry retailers order as needed from wholesalers or finance their inventory.

Owning the diamonds eliminates the middle man, the Hannoushes said, giving them a leg up on pricing.

It’s an approach to doing business they got from their father, Elias Hannoush, who opened the first Hannoush Jewelers at Crossgates Mall in 1994. He had worked as a repairman at Kay Jewelers for six years, saving enough money to open the Crossgates store debt-free.

Elias Hannoush recently came out of retirement to run the family’s newest store in Clifton Park, which opened on Valentine’s Day this year. Sales have increased just about every month since the store opened.

Jewelry buyers are returning to stores as reports surface that the national recession is ending. Unemployment is still high, but that’s not the only story in the news.

“People feel better about spending money,” Albert said. “That’s what it comes down to. There’s more positive speculation about the fourth quarter. I’m looking forward to a good season.”